Press Release

Paris, 23rd October 2018

The Q3 revenue performance highlights the acceleration expected in the second half-year

• Revenues of €687 million, up 8% on an organic basis[1] and 15% on a reported basis
• Growth acceleration of Retail at 12%1, Bambora performance in line with our expectations
• 4%1 growth for Banks & Acquirers with an unfavourable geographical mix
• Negative forex impact of €22 million compared to last year

Adjustment of our 2018 EBITDA[2] full-year guidance to€510 million

• Revenue growth in the second half of the year with an unfavourable mix on the Banks & Acquirers profitability
• Confirmation of the announced savings plans
• Additional c. €5 million negative impact coming from the currencies in the revised EBITDA
• Adjusted FCF[3] conversion rate between 40% and 45%

Implementation of a plan to optimise the Banks & Acquirers performance

Board decision to appoint a committee of independent Directors to review, in coordination with the management, the strategic options for the company and the evolution of its governance

Philippe Lazare, Chairman and Chief Executive Officer of Ingenico Group, commented: "This quarterly performance illustrates the year-end revenue acceleration we were expecting for 2018. The Retail performance reaches, for the first time, the double digit growth thanks to an outstanding SMB dynamic and the continuing improvement of the Global Online's performance as well as the North American activities within Enterprise. The adjustment of our 2018 objectives is exclusively related to the disappointing performance of Banks & Acquirers despite its return to growth. 2018 illustrates the transfer of its center of gravity towards the Retail activities, leading to a profile with more recurring revenues. It confirms both the soundness of the acquisitive and development group strategy as well as the differentiated evolution of its two activities. As indicated during our last communication, Ingenico is reviewing its strategic options for the group as well as for its two divisions in order to improve the group's value creation profile."
Key figures for the third quarter 2018

	Q3 2017 Reported	Q3 2017 Pro forma*	Q3 2018
€m	% Change
€m	€m	Comparable1	Reported
Retail	260	314	345	12%	33%
SMBs	35	89	103	20%	196%
Global Online	124	124	136	11%	9%
Enterprise	101	101	106	8%	6%
Banks & Acquirers	337	343	342	4%	1%
EMEA	155	152	127	-17%	-18%
Latin America	44	44	58	55%	31%
North America	45	45	42	-6%	-7%
Asia-Pacific	93	101	113	14%	21%
TOTAL	597	656	687	8%	15%
*2017 PF figures including acquisitions made during the year at 100%

Ingenico Group (Euronext: FR0000125346 - ING), the global leader in seamless payment, today announced its revenue for the third quarter of 2018.

Third quarter key highlights

Growth acceleration in Retail to reach 12%1

• Outstanding performance of SMB (+20%) driven by the successful Bambora integration and German deployment
• Global Online back to double digit level of growth (+11%) supported by new features and product developments
• Strong performance of Enterprise (+8%) driven by both North America and the European in-store services

4%1 growth for Banks & Acquirers

• Good dynamic in Asia-Pacific
• Strong growth acceleration in Latin America
• Disappointing performance of EMEA and North America

Third quarter 2018 performance

In the third quarter of 2018, revenue totalled €687 million, representing an increase of 15% on a reported basis, including a negative foreign exchange impact of €22 million. On a comparable basis, revenue was 8% higher than in the third quarter of 2017.

The Retailbusiness unit revenues reached €345 million, up 33% on a reported basis, impacted by a negative foreign exchange of €8 million. On a comparable basis, revenue grew by 12% in the third quarter of 2018. The Bambora integration is perfectly on track with our initial expectations, especially with its model deployment in Germany which has been promising during the quarter.

• Small & Medium Businesses (up 20%): The strong quarterly performance illustrates the success of Bambora's integration, which is delivering in line with our expectations. In the course of the past quarter, more than 4,000 new merchants per month have joined the SMB community of clients, showing the relevance of the offer. On top of the existing positioning of Bambora in the Nordics, the performance has been driven by the acquiring volumes that continue to increase, with more than 30% growth during the quarter, and the German entity that is finalizing its transformation with a rejuvenated organization and commercial dynamic. In parallel, the third quarter has been marked by the signing of a partnership with Payworks in order to launch new innovative payment solutions to the integrated segments.
  
• Global Online (up 11%): As expected, the division is back to double-digit growth. The churn rate remains at a very low level and the activity has benefited from the roll out of new features and more efficient on-boarding of clients. Its leaner organization enabled the group to provide new products more easily and rapidly than before, such as the Trustly payment method, and new versions of the payment gateway to comply with the latest versions of the e-commerce platforms. The deployment of the Chatbot tools with emblematic customers is gaining traction, as those solutions provide an exceptional conversion ratio. During the quarter, numerous clients have been on-boarded within the platform such as Iberostar, Trip.com, Elevate Financial or TickMill among others.
  
• Enterprise (up 8%): As mentioned during the publication of the results for the first half-year, the division has benefited this quarter from a significant contract of a US based retailer. Therefore, the North American performance has shown a very strong dynamic throughout the quarter and will continue to be driven by the early EMV renewals coming from Retail as well as by a strong traction of our Mobile solutions. In parallel, the European dynamic remains contrasted, Turkey being strongly impacted by the ongoing macroeconomic development, whereas in-store gateway processing remains strong. The business unit has gained significant commercial successes in Germany within the Healthcare sector and has benefited from the Deutsche Post contract deployment.

The Banks & Acquirersbusiness unit totalled revenues of €342 million, up 1% on a reported basis, impacted by a negative foreign exchange of €13 million. On a comparable basis, revenue increased by 4% compared to the third quarter of 2017. The Banks & Acquirers dynamic has continued to improve during the quarter, driven by the good performance of some of our big clients in Asia-Pacific and in Latin America, while Europe was weak due to some quarterly seasonal effects and the phasing out of the Iranian market.

• Europe, Middle-East & Africa (down 17%): Despite a strong performance in France driven by the continued success of the Telium Tetra deployment, the region's performance has been encumbered by the overstock of POS from our main Northern clients following the PCI migration. This impact will last for the next couple of quarters as clients reduce stock levels. As expected, the Iranian situation did not improve and has therefore impacted the overall activity trend. The quarter was still under pressure due to the consolidation that is taking place in Germany and seasonality effects in regions such as Iberia. Those effects should dissipate by the end of the year. Eastern Europe continues to face the high comparison basis coming from Russia. In parallel, the Axium launch is in line with the product plan.
  
  
• Asia-Pacific (up 14%):The overall trends are improving significantly in the region, with India back to positive growth after two quarters impacted by the comparison basis resulting from the demonetization process. Australia is accelerating thanks to the gain of new contracts, while Japan is ramping up with new certifications related to the ongoing EMV migration. The South East Asian market remains dynamic, driven by Indonesia that is back to a normal level of business. China is as expected stable compared to last year, with the APOS continuing with very good momentum (c. 460k units shipped during the quarter).
  
• Latin America (up 55%):The quarterly performance illustrates the strong Brazilian recovery. The country dynamic has been driven by the gaining of numerous contracts with the largest local acquirers thanks to the Telium Tetra success and the Android products deployment. This enabled Ingenico Group to win market shares within the local market. The remaining part of the region was very buoyant, with Mexico rebounding after a slow quarter following the anticipation of the national election, and a strong performance in Argentina.
  
• North America (down 6%): The quarterly dynamic has shown a mixed performance between Canada performing strongly and the United States remaining weak. Unlike the Retail part of the US activity, the B&A's activity is still lagging from the ISV's ramp up as well as some certifications that are taking longer than expected. Nevertheless, the quarter saw milestone achievements such as the signing of a partnership with Toshiba, opening up the wide and promising grocery market to Ingenico Group.

Adjusted full-year 2018 outlook

Ingenico Group is now expecting an EBITDA of €510 million vs. at least €545 million previously. The new guidance factored in a disappointing performance of the Banks & Acquirers business unit. The division is penalized by unfavourable geographical mix impacting its profitability. The EBITDA to Adjusted FCF conversion ratio is now expected to be in the range of 40% to 45% vs. at least 45% previously.
Following the recent currency evolution, the guidance now factors in a negative impact from currencies of c. €30-35 million compared to €25-30 million.

Conference Call

The third quarter 2018 revenue will be discussed in a Group telephone conference call which will be held on the 23rd October 2018 at 8.00am Paris time (7.00am UK time). The call will be accessible by dialling one of the following numbers: +33 (0)1 72 72 74 03 (from France), +1 646 722 4916 (from the US) and +44 (0)20 7194 3759 (from other countries), with the conference ID: 13948420#. A presentation will be available at www.ingenico.com/finance

This press release contains forward-looking statements. The trends and objectives given in this release are based on data, assumptions and estimates considered reasonable by Ingenico Group. These data, assumptions and estimates may change or be amended as a result of uncertainties connected in particular to the performance of Ingenico Group and its subsidiaries. These forward-looking statements in no case constitute a guarantee of future performance, and involve risks and uncertainties. Actual performance may differ materially from that expressed or suggested in the forward-looking statements. Ingenico Group therefore makes no firm commitment on the realization of the growth objectives shown in this release. Ingenico Group and its subsidiaries, as well as their executives, representatives, employees and respective advisors, undertake no obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future developments or otherwise. This release shall not constitute an offer to sell or the solicitation of an offer to buy or subscribe for securities or financial instruments.

About Ingenico Group

Ingenico Group (Euronext: FR0000125346 - ING) is the global leader in seamless payment, providing smart, trusted and secure solutions to empower commerce across all channels, in-store, online and mobile. With the world's largest payment acceptance network, we deliver secure payment solutions with a local, national and international scope. We are the trusted world-class partner for financial institutions and retailers, from small merchants to several of the world's best known global brands. Our solutions enable merchants to simplify payment and deliver their brand promise.

Stay in touch with us:
 www.ingenico.com         twitter.com/ingenico

For more experts' views, visit our blog.

Contacts / Ingenico Group

Investors Laurent Marie VP Investor Relations & Financial Communication laurent.marie@ingenico.com (T) / (+33) (0)1 58 01 92 98

Investors Kevin Woringer Investor Relations Manager kevin.woringer@ingenico.com (T) / (+33) (0)1 58 01 85 09

Communication Stéphane Grand Media Communication stephane.grand@ingenico.com (T) / (+33) (0)1 58 01 91 95

Upcoming events

2018 full year results: 26th February 2019

EXHIBIT 1

Key figures for the first nine months of 2018

	9 months 2017 Rep.	9 months 2017 PF*	9 months 2018
€m	% Change
€m	€m	Comparable1	Reported
Retail	775	939	975	8%	26%
SMBs	103	260	288	15%	180%
Global Online	363	369	380	9%	5%
Enterprise	309	311	307	1%	-1%
Banks & Acquirers	1,044	1,060	941	-7%	-10%
EMEA	444	435	370	-14%	-17%
Latin America	121	121	130	26%	7%
North America	137	137	119	-8%	-13%
Asia-Pacific	343	367	321	-9%	-6%
TOTAL	1,819	1,999	1,916	0%	5%
*2017 PF figures including acquisitions made during the year at 100%

EXHIBIT 2

Following the evolution of its activities and in order to support its position as world leader in omnichannel payments, Ingenico Group has put in place a new client-focused organization. The Group's reporting is structured around two business units: Banks and Acquirers (B&A) and Retail.

The pro forma revenue for the period ended on 31st December 2017 integrates Techprocess, IECISA, SST and Bambora. It has been produced as if each of these acquisitions were integrated from 1st January 2017.

NEW ORGANIZATONAL REPORTING ON A REPORTED BASIS
In millions of euros	Q1 2017	Q2 2017	Q3 2017	Q4 2017	2017
Retail	243	272	260	325	1,099
SMBs	33	35	35	72	175
Global Online	111	127	124	131	494
Enterprise	99	110	101	122	434
Banks & Acquirers	351	356	337	367	1,411
EMEA	142	147	155	159	602
Latin America	40	37	44	49	170
North America	37	55	45	50	187
APAC	132	118	93	111	454
TOTAL	594	628	597	692	2,510
2. NEW ORGANIZATONAL REPORTING ON A PRO FORMA BASIS
In millions of euros	Q1 2017 PF	Q2 2017 PF	Q3 2017 PF	Q4 2017 PF	2017 PF
Retail	299	327	314	340	1 280
SMBs	81	90	89	89	349
Global Online	118	127	124	131	500
Enterprise	100	111	101	119	431
Banks & Acquirers	354	363	343	369	1 428
EMEA	137	146	152	158	594
Latin America	40	37	44	49	170
North America	37	55	45	50	187
APAC	140	126	101	114	480
TOTAL	653	691	656	708	2 708

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[1] On a like-for-like basis

[2] EBITDA is not an accounting term; it is a financial metric defined here as profit from ordinary activities before depreciation, amortization and provisions, and before share-based compensations.

[3] Adjusted free cash-flow from non-recurring items (restructurings, M&A)

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Source: INGENICO via Globenewswire